HB0650 94TH GENERAL ASSEMBLY

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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0650

Introduced 1/28/2005, by Rep. Jack D. Franks

SYNOPSIS AS INTRODUCED:

35 ILCS 105/3b new
35 ILCS 120/2-75 new
30 ILCS 805/8.29 new

Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, notwithstanding any other provision to the contrary, no tax shall be imposed under those Acts upon the privilege of using in this State (for the Use Tax Act) or persons engaged in the business of selling at retail (for the Retailers' Occupation Tax Act) an individual item of clothing or footwear designed to be worn about the human body that (i) is purchased for a selling price of $200 or less and (ii) is purchased from 12:01 a.m. on the first Friday in August through midnight of the Sunday that follows 9 days later. Provides that a unit of local government may, by ordinance adopted by that unit of local government, opt out of the tax holiday and continue to collect and remit the tax imposed under those Acts during the tax holiday period. Provides that articles that are normally sold as a unit cannot be priced separately and sold as individual items in order to be subject to the holiday. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT regarding taxation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Use Tax Act is amended by adding Section 3b as follows:

(35 ILCS 105/3b new)

Sec. 3b. Tax holiday for clothing and footwear.

(a) Notwithstanding any other provision to the contrary, no tax shall be imposed under this Act upon the privilege of using in this State an individual item of clothing or footwear designed to be worn about the human body purchased at retail from a retailer if that item of clothing or that footwear (i) is purchased for a selling price of $200 or less and (ii) is purchased from 12:01 a.m. on the first Friday in August through midnight of the Sunday that follows 9 days later. Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer shall be taken into account in determining the selling price of the item for purposes of this holiday.

(b) A unit of local government may, by ordinance adopted by that unit of local government, opt out of the tax holiday imposed by this Section and continue to collect and remit the tax imposed under this Act during the tax holiday period.

(c) Articles that are normally sold as a unit must continue to be sold in that manner; they cannot be priced separately and sold as individual items in order to be subject to the holiday. For example, if a pair of shoes sells for $250, the pair cannot be split in order to sell each shoe for $125 to qualify for the holiday. If a suit is normally priced at $250 on a single price tag, the suit cannot be split into separate articles so that any of the components may be sold for less than $200 in order to qualify for the holiday. However, components that are normally priced as separate articles may continue to be sold as separate articles and qualify for the holiday if the price of an article is less than $200.

Section 10. The Retailers' Occupation Tax Act is amended by adding Section 2-75 as follows:

(35 ILCS 120/2-75 new)

Sec. 2-75. Tax holiday for clothing and footwear.

(a) Notwithstanding any other provision to the contrary, no tax shall be imposed under this Act upon persons engaged in the business of selling at retail an individual item of clothing or footwear designed to be worn about the human body if that item of clothing or that footwear (i) is purchased for a selling price of $200 or less and (ii) is purchased from 12:01 a.m. on the first Friday in August through midnight of the Sunday that follows 9 days later. Any discount, coupon, or other credit offered either by the retailer or by a vendor of the retailer to reduce the final price to the customer shall be taken into account in determining the selling price of the item for purposes of this holiday.

(b) A unit of local government may, by ordinance adopted by that unit of local government, opt out of the tax holiday imposed by this Section and continue to collect and remit the tax imposed under this Act during the tax holiday period.

(c) Articles that are normally sold as a unit must continue to be sold in that manner; they cannot be priced separately and sold as individual items in order to be subject to the holiday. For example, if a pair of shoes sells for $250, the pair cannot be split in order to sell each shoe for $125 to qualify for the holiday. If a suit is normally priced at $250 on a single price tag, the suit cannot be split into separate articles so that any of the components may be sold for less than $200 in order to qualify for the holiday. However, components that are normally priced as separate articles may continue to be sold as separate articles and qualify for the holiday if the price of an article is less than $200.

Section 90. The State Mandates Act is amended by adding Section 8.29 as follows:

(30 ILCS 805/8.29 new)

Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 94th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.